Fifteen Characteristics of a Good Stock Trader


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Trading in stocks is not for everyone. Some people can do it, some can’t. Even among those who can, not everyone can be successful. While there are no hard and fast rules on what makes and doesn’t make a good stock trader, these Wall Street wizards you might hear about who made the most in the shortest amount of time. all seem to have certain characteristics in common.

  1. Successful stock traders are able to go against their natural instincts. Being a successful investor requires finding the next right way to profitably trade stocks.
  2. Successful traders have a system. A system as simple as possible. It doesn’t matter what system you use as long as you stick to it. A successful trader knows their system and trades ONLY on the system. “The secret to success is consistency of purpose.” You need to develop a distinct strategy to get in and out of a job.
  3. Successful traders are risk averse. Successful traders don’t like to lose money and stop before losing too much, even admitting that they made a mistake.
  4. Successful traders are willing to make mistakes. Successful traders have what many Native Americans call “sovereignty.” Sovereignty is the right and the ability, not to do the right thing, but to do the wrong thing. Sovereignty is the ability to make your own mistakes.
  5. Successful traders don’t care about taking a loss. Successful traders expect to take losses and know when to cut them.
  6. Successful traders know or learn to analyze stocks. Many traders only use technical analysis, but you might also want to learn how to use fundamental analysis.
  7. Successful traders led balanced lives. We all know the thrill of the hunt and the market can be addicting, a successful trader is the one who knows when to go and can do it.
  8. A good trader is patient. A successful trader lets profitable trades run but is able to back down when it turns out he is wrong. Patience can mean resilience, courage, and conviction when the markets go against you.
  9. A successful trader has a strong desire to be successful. Success takes constant work, not random effort, a strong desire to succeed can make all the difference in learning what you need to know and sticking to your strategy when the going gets tough.
  10. A successful trader is disciplined. Very disciplined. A successful trader will do what he needs to do, even if he is not in the mood. Discipline also means sticking to your strategy, not buying or selling suddenly on a whim, or because of “good advice”.
  11. A successful trader knows the difference between defensive and offensive behavior, and when to use each. – Preserve your money first, enjoy it later.
  12. Successful traders don’t listen to rumors and don’t get emotionally involved. To be a good trader, you have to be very hard on yourself. You need to be able to resist the urge to prove you’re right and be prepared to make mistakes. You also need to be able to not let emotions affect your decisions. setting up stop loss points for every decision is something you are going to have to do. It will mean more than occasionally admitting that you were wrong. You and your wallet will survive and you can re-enter the position when the trends indicate that the time is right. You are going to have to learn to ignore any emotional ties you have with your stock and make quick stock trends your master. You will miss the lowest entry points and the highest outlets, but you will be able to sleep at night. You will need to learn to follow the trend train and take the plunge before your profits turn into losses.
  13. A successful trader knows himself. Successful traders need to be aware of their strengths and weaknesses. Your strengths and weaknesses will become very important. Have a plan to deal with your weakness. Play to your strengths whenever you can.
  14. A successful trader knows his investments. Your investments are almost as important as you. Know their past as well as their strengths and weaknesses.
  15. A successful trader sticks to the rules. The rules are there for a reason. Nothing can ruin a successful trader as quickly or as surely as breaking the rules.


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